Shayla Green owns Creative Designs. The trial balance of the firm for January 31, 20X1, the first month of operations, is shown below. End-of-the-month adjustments must account for the following items: a. Supplies were purchased on January 1, 20X1; inventory of supplies on January 31, 20X1, is $1,450. b. The prepaid advertising contract was signed on January 1, 20X1, and covers a four-month period. c. Rent of $1,950 expired during the month. d. Depreciation is computed using the straight-line method. The equipment has an estimated useful life of 10 years with no salvage value. Required: 1. Complete the worksheet for the month. 2. Prepare an income statement, statement of owner's equity, and balance sheet. No additional investments were made by the owner during the month. 3. Journalize and post the adjusting entries. Analyze If the adjusting entries had not been made for the month, by what amount would net income be overstated or understated? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Inc Stmt Req 2 Stmt of OE Req 2 Bal Sheet Req 3 Gen Journal Req 3 Ledgers Analyze Complete the worksheet for the month Trial Balance CREATIVE DESIGNS Worksheet Month Ended January 31, 20X1 Adjusted Trial Balance Adjustments Credit Debit Credit Debit $ 36,200 13,300 1,450 Account Name Debit Cash $ 36,200 Accounts receivable 13,300 Supplies 9,150 Prepaid advertising 11,200 Prepaid rent 23,400 Equipment 30,000 Accumulated depreciation-Equipment Accounts payable 16,250 Shayla Green, Capital 60,700 Shayla Green, Drawing 7,700 Fees income 66,150 Advertising expense Depreciation expense-Equipment Rent expense Salaries expense Supplies expense Utilities expense Sub-totals Totals 10,400 7.700 1,950 21,050 30,000 Income Statement Balance Sheet Credit Debit Credit Debit Credit $ 36,200 13,300 1,450 21,050 30,000 16,250 16,250 60,700 60,700 7,700 7,700 66,150 66,150 10,400 10.400 1,750 $ 143,100 $ 143,100 $ 0 $ 9,650 $ 1,750 121,850 $ 143,100 $ 1.750 12,150 $ 66,150 $ 109,700 $ 76,950 $ 12,150 $ 66,150 $ 109,700 $ 76,950 Req 1 Req 2 Inc Stmt Req 2 Stmt of OE Req 2 Bal Sheet Req 3 Gen Journal Req 3 Ledgers Analyze Prepare an income statement. CREATIVE DESIGNS Income Statement Month Ended January 31, 20X1 Revenue Expenses Total expenses < Req 1 + 0 $ 0 Req 2 Stmt of OE > Req 2 Inc Req 1 Req 2 mt of Stmt OE Req 2 Bal Sheet Req 3 Gen Journal Req 3 Ledgers Analyze Prepare a statement of owner's equity. No additional investments were made by the owner during the month. CREATIVE DESIGNS Statement of Owner's Equity Month Ended January 31, 20X1 0 $ 0 Assets CREATIVE DESIGNS Balance Sheet Jammary 31, 20X1 Total assets $ 0 Liabilities and Owner's Equity Liabilities Owner's Equity Total Liabilities and Owner's Equity $ 0 Journal entry worksheet < 1 2 3 4 Prepare the adjusting entry for supplies. Note: Enter debits before credits. Date Jan. 31, 20X1 General Journal Debit Credit Record entry Clear entry View general journal Req 1 Req 2 Inc Stmt Req 2 Stmt of OE Req 2 Bal Sheet Req 3 Gen Journal Req 3 Ledgers Analyze Post the adjusting entries. Supplies Date Jan. 1, 20X1 Jan. 31, 20X1 Date Jan. 1, 20X1 Prepaid Rent Prepaid Advertising Account No.121 Debit Credit Balance Date Jan. 01, 20X1 Jan. 31, 20X1 Account No. 130 Debit Credit Balance Account No.131 Accumulated Depreciation Equipment Debit Credit Balance Date Jan. 31, 20X1 Debit Jan. 31, 20X1 Supplies Expense Date Jan. 31, 20X1 Date Advertising Expense Account No.517 Debit Credit Balance Date Jan. 31, 20X1 Rent Expense Jan. 31, 20X1 Account No. 142 Credit Balance Account No. 519 Debit Credit Balance Depreciation Expense Equipment Account No. 520 Debit Credit Balance Date Jan. 31, 20X1 Account No. 523 Credit Balance Required: 1. Complete the worksheet for the month. 2. Prepare an income statement, statement of owner's equity, and balance sheet. No additional investments were made by the owner during the month. 3. Journalize and post the adjusting entries. Analyze If the adjusting entries had not been made for the month, by what amount would net income be overstated or understated? Complete this question by entering your answers in the tabs below. Req 2 Inc Req 1 Stmt Req 2 Stmt of OE Req 2 Bal Sheet Req 3 Gen Journal Req 3 Ledgers Analyze If the adjusting entries had not been made for the month, by what amount would net income be overstated or understated? Net Income Amount